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Genetic Insights Co. purchases an asset for $12,389. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years
Genetic Insights Co. purchases an asset for $12,389. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, and 4 are 14.29%, 24.49%, 17.49%, 8.93% and 8.93% respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of year 6 for $4,174. Calculate gain or loss on disposal. gain should be entered as a positive number. Loss should be entered as a negative number.
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